Tanzanian billionaire, Rostam Aziz, is poised to disrupt Kenya’s cooking gas market with his ideas to set up a plant in the country.
Rostam, the proprietor of Taifa Gas, submitted his bid to enter Kenya’s marketplace but the process stalled owing to protracted courtroom battles involving the two neighbouring countries.
His entrance into Kenya’s sector follows a offer struck by President Uhuru Kenyatta and his Tanzanian counterpart, Samia Suluhu Hassan, that eased the price and procedure of doing business enterprise in both countries.
Rostam’s organization – which is set to make a fuel plant and storage facility – is set to grow to be a person of the greatest vegetation in the country.
At the moment, refilling a 6kg cooking gasoline cylinder price Ksh1,540, even though a 13kg cylinder expense Ksh3,330. His company is also established to offer you competitiveness and guide to a reduction of prices.
File image of Rostam Aziz, owner of Taifa Gasoline enterprise in Tanzania
According to knowledge from Statista, the domestic intake of Liquefied Petroleum Gasoline (LPG) in the state recorded a sharp raise to 326 thousand metric tons in 2020.
In 2019, LPG use in the state stood at 312 thousand metric tons. This growth demonstrated an upward trajectory in demand from customers for cooking gasoline and Rostam preferred to get a share of the market.
Taifa Gas has not issued a statement on the standoff with the Kenyan federal government that has observed the licensing of the firm delayed.
In 2019, Rostam crafted liquefied petroleum fuel (LPG) storage and filling facility in Dar es Salaam, Tanzania. The facility is reported to have price him Ksh7.7 billion.
The plant was commissioned by the late Tanzanian President John Pombe Joseph Magufuli.
“Considering the fact that 60 per cent of the country’s inhabitants lives in rural spots and relies upon on charcoal and firewood as the principal sources of vitality, selling fuel use need to play a vital position in addressing environmental degradation,” the late Magufuli mentioned during the commissioning of the plant.
In accordance to Forbes 2015, Rostam was value Ksh109 billion (USD900 million) at the time.
The American organization magazine, which shown Rostam among the the 50 richest men and women in Africa, further more exposed that he owned virtually 18 for every cent of Vodacom Tanzania, a cell mobile phone providers company.
In 2014, Rostam was described to have marketed 17 for each cent of the cellphone business shares to a South African business.
“The transaction allows Vodacom to boost its publicity to a person of Vodacom’s key investments in sub-Saharan Africa. Vodacom Tanzania has been Vodacom’s most profitable financial commitment outside of South Africa to date,” the company’s statement study in portion at the time.
Forbes even further in-depth that the tycoon owns a mining organization and a actual estate firm in Dubai and Oman.
File photograph of Gas Cylinders on display screen at an outlet in Nairobi City